XML 54 R23.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES
13. INCOME TAXES
Current income tax expense represents the amount expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. The Company had $0.9 million and $0.7 million of income tax expense, and $17.1 million of income tax benefit for the years ended December 31, 2024, 2023 and 2022, respectively.
The income tax expense and effective income tax rate for the years ended December 31, 2024, 2023 and 2022 were as follows:


Year Ended December 31,
202420232022
Current tax:
Federal$— $— $74 
State859 683 1,356 
Total current tax859 683 1,430 
Deferred tax:
Federal— — (18,532)
State— — 11 
Total deferred tax— — (18,521)
Total income tax expense (benefit)
$859 $683 $(17,091)
The reconciliation between the U.S. statutory tax rate and the Company’s effective tax is presented as follows (in thousands):
 Year Ended December 31,
 202420232022
U.S. federal statutory income tax benefit applied to loss before income taxes
$(275,971)$(51,619)$(454,316)
State income taxes, net of federal benefit
6,673 12,325 (31,667)
Stock compensation14,319 16,578 4,789 
Non-deductible interest2,875 11,659 11,366 
Fair value adjustment - convertible notes287,523 — (10,942)
Reorganization costs
1,508 40,572 — 
Non-deductible expenses— — 288 
Valuation allowance
(36,230)(29,195)241,892 
Goodwill impairment— — 221,499 
Other permanent items
162 363 — 
Total income tax expense (benefit)
$859 $683 $(17,091)
The Company’s deferred tax assets and liabilities are detailed as follows (in thousands):
 Year Ended December 31,
 202420232022
Deferred tax assets:
Net operating loss carryforward$70,530 $73,272 $79,729 
Capital loss carryforward48,007 50,313 52,765 
Deferred interest carryforward23,858 18,438 11,289 
Research tax credit carryforward1,005 483 404 
       Reserves and accruals4,773 2,440 4,248 
Stock-based compensation6,705 17,614 16,917 
Derivatives
228 — — 
Property, plant and equipment, net
21,857 53,334 75,349 
Digital asset impairment loss— 6 — 
Debt extinguishment loss— 2,446 2,561 
Intangibles (other than goodwill)2,266 2,660 2,301 
Leases23,455 2,099 7,062 
Capitalized research and development expenses4,872 4,226 801 
Other470 6 169 
Gross deferred tax assets
208,026 227,337 253,595 
Valuation allowance
(183,123)(219,515)(248,710)
Deferred tax assets, net of valuation allowance
24,903 7,822 4,885 
Deferred tax liabilities:
Deferred settlement
— (6,031)— 
Operating lease ROU assets
(24,903)(1,791)(4,885)
Deferred tax liabilities, net
(24,903)(7,822)(4,885)
Total net deferred tax assets (liabilities)
$— $— $— 
The changes in the Company’s valuation allowance were as follows (in thousands):
Year Ended December 31,
202420232022
Beginning Balance
$219,515 $248,710 $6,781 
Change related to current net operating losses and impairments16,612 (561)241,892 
Change related to deferred tax adjustments(29,217)(37,485)37 
Change related to prior period adjustments

6,409 8,851 — 
Change related to restructuring
(30,196)— — 
Ending Balance
$183,123 $219,515 $248,710 
Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. The assessment regarding whether a valuation allowance is required on deferred tax assets considers the evaluation of both positive and negative evidence when concluding whether it is more likely than not that deferred tax assets are realizable. After reviewing the positive and negative evidence available, the Company has recorded a valuation allowance of $183.1 million. The valuation allowance primarily relates to deferred tax assets for fixed assets, deferred interest carryforwards, net operating loss carryforwards and capital loss carryforwards.
As of December 31, 2024, the Company has federal and state net operating loss carryforwards in the amount of $312.4 million and $128.1 million, respectively. As of December 31, 2023, the Company had federal and state net operating loss carryforwards in the amount of $330.2 million and $106.6 million, respectively. The federal net operating loss can be carried forward indefinitely, however the utilization of the federal net operating loss for a tax year is equal to the lesser of (1) the aggregate of the net operating loss carryovers to such year, plus the net operating carrybacks to such tax year, or (2) 80% of taxable income determined without regard to the deduction. The Company's state net operating loss carryforwards expiration periods range from 2035 to indefinite. As of December 31, 2024, the Company had U.S. federal and state capital loss carryforwards of $220.7 million and $42.4 million, respectively. The capital loss carryforwards begin to expire in 2028.
In addition, the Company's net operating loss may be subject to utilization limitations due to changes of control, as defined by tax law under Internal Revenue Code Sections 382. Similar provisions may subject the capital loss carryforwards to utilization limitation.

At December 31, 2024 and 2023, the Company had an unrecognized tax benefit of $0.6 million and $0.3 million, respectively. Accrued interest and penalties related to unrecognized tax benefits are recorded as income tax expense. The Company continues to believe its positions are supportable; however, due to uncertainties in any tax audit outcome, the Company's estimates of the ultimate settlement of uncertain tax positions may change and the actual tax benefits may differ from the estimates.
The Company files income tax returns in the U.S. federal and various state jurisdictions. The Company’s 2020 through 2024 tax years are subject to U.S. federal and state examination.